Viacom President and CEO Bob Bakish attends day four of the annual Allen & Company Sun Valley Conference July 11, 2023 in Sun Valley, Idaho.
David A. Grogan | CNBC
Paramount Worldwide CEO Bob Bakish is stepping down, the company announced Monday, as merger negotiations with Skydance Media continue.
Bakish will also leave the company’s board of directors and be replaced by a so-called “Office of the CEO.” Paramount will now be led by CBS Chairman and CEO George Cheeks; Chris McCarthy, president and CEO of Showtime/MTV Entertainment Studios and Paramount Media Networks; and Brian Robbins, head of Paramount Pictures and Nickelodeon. The company said the three executives would work closely with Paramount Chief Financial Officer Naveen Chopra and the board of directors.
In the statement released Monday, Paramount said the new management “is working with the board of directors to develop a comprehensive long-term plan to accelerate growth and expand popular content, materially streamline operations, strengthen the review and continue to optimize the streaming strategy. “.
Paramount also reported its first quarter results after the bell on Monday.
The ousting comes as Paramount and Skydance Media move closer to a possible merger, CNBC previously reported. The companies are in exclusive talks to continue the deal until May 3, and a special committee is already in place.
Bakish spoke privately against the merger, saying it would dilute common shareholders, CNBC reported. Under the proposed deal, nearly 50% of the combined company would be owned by Skydance and its private backers, while common shareholders would own the remainder of Paramount, which would remain publicly traded.
On Saturday, CNBC reported that Bakish could step down as CEO as early as Monday, and before earnings are released, after losing the trust of Paramount Global’s majority shareholder, Shari Redstone, who may view his removal as a way to expedite a deal with Skydance, CNBC reported. Monday.
The departure also comes as Paramount is in negotiations with cable company Charter Communications for the distribution of its television networks, including CBS and MTV. The deadline for these negotiations is Tuesday.
The special committee, responsible for accepting or rejecting transactions, and Skydance, backed by private equity firms. KKR and RedBird Capital Partners, looked into how to value Skydance’s assets in a merger, as well as how much equity to add to the company, CNBC previously reported.
Skydance intends to name its CEO David Ellison to head Paramount if the deal goes through, CNBC previously reported.
—Alex Sherman of CNBC contributed to this report.
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